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To: p23185
This would punish the consumers and reward the savers, who are the source of financing for capitalism.

LOL! As if corporate profit, from the sole proprietorship to the the multinational conglomerate were not the fuel which drives the engine of growth.

Without spending (people buying the product) there is no company to invest in, it goes belly up!

14 posted on 01/21/2006 7:25:23 PM PST by Smokin' Joe (How often God must weep at humans' folly.)
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To: Smokin' Joe
Without spending (people buying the product) there is no company to invest in, it goes belly up!

I wasn't very clear - a national sales tax would be more fair since poor people do not have as much to spend on consumables as richer people do - the share of tax would be fair. Profits do sustain a company and provide for further investment and R&D, but before profits a new start up must get financing somewhere which is usually by tapping savings via bonds, stocks, loans, etc. Perhaps a flat tax would work, but I think that would not be as fair as a national sales tax. I don't think this would cause people to stop spending because they would no longer owe the IRS thousands of dollars annually therefore they can afford the same product at a higher price to cover the tax.

16 posted on 01/21/2006 7:37:12 PM PST by p23185 (Why isn't attempting to take down a sitting Pres & his Admin considered Sedition?)
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